US-China Reach Framework Deal to Keep TikTok Operating in America

Washington, D.C. –: A breakthrough agreement between the United States and China may allow TikTok to continue operating in the U.S., as both sides have reached a framework that satisfies key national security demands, a senior White House official confirmed on Saturday.

Under the proposed deal, ByteDance, TikTok’s Chinese parent company, will retain less than a 20% stake in a newly formed U.S.-based entity controlling TikTok’s American operations. A new board of directors will be formed comprising six American members and one ByteDance-appointed member, ensuring U.S. control over governance and strategic decisions.

The agreement follows the 2024 U.S. law that mandated TikTok’s shutdown by January 2025 unless ByteDance sold its U.S. assets. However, former President Donald Trump, who returned to office in 2024, delayed the enforcement deadline to mid-December in hopes of reaching a workable solution. As part of this new deal, Trump is expected to extend the deadline by another 120 days, pushing the final decision into April 2025.

The senior official emphasized that under the deal:

• All U.S. user data will be stored on Oracle-run U.S. cloud infrastructure.

• The TikTok algorithm will be “secured, retrained, and operated entirely in the U.S.”, independent of ByteDance control.

• The content recommendation engine will be rebuilt from scratch using U.S.-only data and subject to oversight by American cybersecurity experts.

• U.S. users will still be able to interact with global content, preserving the platform’s open nature.

The announcement marks a rare thaw in tense U.S.-China tech relations and comes after a recent phone call between President Trump and Chinese President Xi Jinping, during which both leaders reportedly expressed willingness to cooperate.

While TikTok has not commented publicly on the deal yet, the framework largely aligns with previous reporting by Reuters and other outlets.

Still, questions remain. Lawmakers, including Rep. Frank Pallone (D-NJ), have expressed skepticism. “The devil will be in the details,” Pallone said, warning against any arrangement that gives China continued access to American user data or risks turning TikTok into a political propaganda tool.

Trump, who has over 15 million followers on TikTok, has publicly acknowledged the platform’s role in boosting his 2024 re-election campaign. The White House also launched its official TikTok account last month, further signaling political interest in preserving the platform.

Read more: US, China reach understanding on TikTok ahead of Trump–Xi talks

TikTok’s current shareholders include Susquehanna International Group, General Atlantic, and KKR, many of whom are expected to be part of the American investment consortium taking over the U.S. operations.

Despite the deal’s progress, it remains uncertain whether the proposed structure will meet Congress’s strict definition of a “full divestiture” as required by law.

If finalized, the agreement would not only protect access for TikTok’s 170 million U.S. users but also set a precedent for data sovereignty and foreign tech regulation globally.